Booz Allen Hamilton Corp "Strong earnings execution, getting closer to..."

Research evidence excerpt

Booz Allen Hamilton Corp "Strong earnings execution, getting closer to..."

Powered by Lab Global22 MayResearch2026ab Evidence UBS YES

Booz Allen Hamilton Corp Equities

United StatesStrong earnings execution, getting closer to

revenue growth Aerospace

12-month rating Neutral

12m price target US$83.00Return to topline growth needs a few more datapoints

Prior : US$87.00

While the 0-4% FY27 growth guide was better than expected, the market is hesitant to

give BAH (and peers) the benefit of the doubt on a 2H acceleration - not helped by the Price (22 May 2026) US$77.52

fact BAH revenue missed in the quarter and F1Q27 growth remains negative. The end- RIC: BAH.N BBG: BAH US

market remains choppy and DoD obligations, while lagged, do not yet support the MSD

National Security growth guide, though we ultimately see a path to +2% organic Trading data and key metrics

growth this year with upside to the guided HSD decline in Civil. BAH has done a good 52-wk range US$115.95-71.59

job at managing costs and generating cash, which we believe greatly limits the earnings Market cap. US$9.36b

downside risk even if revenue disappoints, but ultimately revenue growth is needed to Shares o/s 121m (COM)

drive sustained earnings growth. The stock is cheap at 9.4X our 2027E EBITDA Free float 90%

(30% discount to S&P500 vs 8% 10yr avg premium) and we are raising our EBITDA Avg. daily volume ('000) 595

estimates slightly, but the combination of the 2H-weighted growth guide and Avg. daily value (m) US$46.7

AI concerns likely limit the opportunity for upside to consensus and/or a near-term re- Common s/h equity (03/27E) US$1.19b

rate. We remain Neutral. P/BV (03/27E) 7.5x

Civil: HSD revenue decline expected for FY27 assumes an improved procurement Net debt to EBITDA (03/27E) 2.4x